Business Highlights: UAW strike looms as deadline nears; Arm shares jump in biggest IPO since 2021
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Detroit automakers and auto workers remain far from a deal as end-of-day strike deadline approaches
DETROIT (AP) — With a deadline looming just before midnight, the United Auto Workers union and Detroit’s three automakers are far apart in contract talks and the union is preparing to strike. UAW President Shawn Fain says General Motors, Ford and Stellantis have raised their initial wage offers but have rejected some of the union’s other demands. The union is threatening to strike any company that hasn’t reached an agreement by 11:59 p.m. Thursday. Talks are ongoing, and GM increased its wage offer Thursday. Ford’s CEO and Stellantis accused the union of failing to respond to their offers. It would be the first time the union has walked out at all three companies at the same time.
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Europe’s central bank hikes key interest rate to record high even as recession threat grows
FRANKFURT, Germany (AP) — The European Central Bank has hiked its key interest rate to a record high. It’s pressing forward in its fight against stubbornly high inflation that’s been plaguing consumers, even as worries grow that higher borrowing costs could help push the economy into recession. The increase Thursday of a quarter-percentage point comes as central banks worldwide try to judge how much anti-inflation medicine is too much. They’re weighing what’s the right point to halt their swift series of rate hikes before the economy tips into a downturn. The ECB signaled that its 10th straight hike could be its last, shifting its emphasis from raising rates to keeping them high enough for long enough to beat down inflation.
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Arm Holdings shares gain nearly 25% in biggest initial public offering since late 2021
NEW YORK (AP) — Shares of U.K. chip designer Arm Holdings rose almost 25% in their stock market debut, in the largest initial public offering of shares in nearly two years. The shares closed at $63.59, giving Arm a market value of $68 billion. Most consumers use at least one product that contains Arm’s chips, though many people may not be familiar with the company itself. Its chip design is used in virtually all smartphones, the majority of tablets and digital TVs. More recently, Arm has expanded into artificial intelligence, smart devices, cloud computing, the metaverse and autonomous driving.
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Retail sales rise 0.6% in August largely due to a spike in gas prices
NEW YORK (AP) — Americans stepped up retail spending modestly from July to August as the price of gasoline jumped, cutting into budgets as many families send their kids off to school. Retail sales rose 0.6% in August, compared with a revised 0.5% increase in July, according to a report issued by the Commerce Department on Thursday. A closely watched category of retail sales that excludes auto dealers, gas stations and building materials and feeds into the gross domestic product increased just 0.1% last month compared to the prior month, after a revised 0.7% increase in July. The big rise in gas prices accounted for more than half of the inflation increase recorded in August, the U.S. Labor Department reported Wednesday.
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New US sanctions target workarounds that let Russia get Western tech for war
The United States is sanctioning more than 150 businesses and individuals as it tries to crack down on evasion and deny Russia access to technology, money and financial channels that fuel Moscow’s war in Ukraine. The latest sanctions package announced Thursday is one of the biggest imposed by the State and Treasury departments. It targets countries, notably Turkey, that sell Western technology to Russia that could be used to bolster its war effort. The package also aims to hobble the development of Russia’s energy sector and future sources of cash, including Arctic natural gas projects, as well as mining and factories producing and repairing Russian weapons.
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Environmental groups urge regulators to shut down California reactor over safety, testing concerns
LOS ANGELES (AP) — Environmental groups are calling on federal regulators to immediately shut down one of two reactors at California’s last nuclear power plant. Friends of the Earth and Mothers for Peace say in a petition filed Thursday that tests are needed on critical machinery that they believe could fail and cause a catastrophe. At issue is the condition of the pressure vessel in a reactor at the Diablo Canyon Nuclear Power Plant. The plant was scheduled to close by 2025, but Pacific Gas & Electric changed course at the direction of the state and plans to seek a longer operating life for the reactors.
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Biden administration restores the power of states and tribes to review projects to protect waterways
WASHINGTON (AP) — States and Native American tribes will have greater authority to block energy projects such as natural gas pipelines that could pollute rivers and streams under a final rule issued Thursday by the Biden administration. The rule taking effect in November reverses a Trump-era action that limited the ability of states and tribes to review pipelines, dams and other federally regulated projects within their borders. The Environmental Protection Agency says the new regulation will empower local authorities to protect rivers and streams while supporting infrastructure projects that create jobs. An EPA official says, ““We actually think this is going to be great for the country.”
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China says EU probe into Chinese electric vehicle exports, subsidies is protectionist
HONG KONG (AP) — China’s Commerce Ministry has protested a decision by the European Union to investigate exports of Chinese electric vehicles, saying it is a protectionist action aimed at distorting the supply chain. The EU announced Wednesday it will probe government subsidies provided to Chinese automakers that the EU contends keep EV prices artificially low. The Ministry of Commerce said the EU’s move was intended to “protect its own industry in the name of ‘fair competition.’” China has become the biggest market for electric vehicles after investing billions in subsidies to gain an edge. Automakers like BYD and Geely have quickly gained market share after launching sales of EVs to Japan and Europe.
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The S&P 500 rose 37.66 points, or 0.8%, to 4,505.10. The Dow Jones Industrial Average rose 331.58 points, or 1%, to 34,907.11. The Nasdaq composite rose 112.47 points, or 0.8%, to 13,926.05. The Russell 2000 index of smaller companies rose 25.79 points, or 1.4% to 1,866.63.